An afternoon rally led by a recovery in the banks and some better than expected Chinese industrial profit numbers was not enough to lift Australian shares into the black, as worries about falling iron ore and oil prices weighed on stock valuations.

The benchmark S&P/ASX 200 Index slipped 0.1 per cent to 5452.6 points on Tuesday, while the broader All Ordinaries Index lost 0.2 per cent to 5434 points. Annual general meeting season provided a slew of company updates.

Local shares took a weak lead from offshore.

In China on Tuesday, industrial profits for September grew by 0.4 per cent year-on-year, which helped buoy Chinese shares but did little for the sentiment toward local resource exporters.

Mining giant BHP Billiton dragged the index under as it fell 1.5 per cent to $33.32. In London on Monday night the company unveiled plans to sell US shale assets.

When the ASX closed the spot price for iron ore, landed in China, was down 1.2 per cent at $US79.52 a tonne with futures trading tipping another fall overnight. Rio Tinto slipped 1.3 per cent to $59.03.

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